When nominees acting against the decisions of the real LLP owners

When nominees acting against the decisions of the real owners: nominee LLP members are used to protect the privacy of the beneficial limited liability partnership owner when there is a legitimate, commercial reason to do so. A nominee partner will receive and act upon instructions given by the real owner and put their names on the paperwork that provides public information about the LLP. This is done in order to protect the names and interests of the beneficial owner.

However, there is a situation that can arise, when the nominee member will act against the decisions of the real owner and this is when the real owner is breaking the law. Whether intentionally or inadvertently, breaking the law will steer the entire LLP towards the courtroom and into trouble, which is why it is the duty of the nominee member to take corrective action regarding any illegal decisions that have been made.

English Law can be tricky to negotiate, which is why we here at Coddan are happy to help you avoid the legal minefield associated with LLPs.

Given that there are more variables in an LLP than a regular limited company, and consequently more opportunities for errors to be made, we can provide nominee partners who will ensure that you stay on the right side of the law.

LLPs are an area of business that we specialise in and if you'd like to find out more about us and how we can save you a lot of time and money, please get in touch.